UTV Software gains 4% as govt approves Walt Disney buyout

Bucking the weak broader market, shares of UTV Software Communications rose by more than 4 per cent on the bourses on Thursday after the government approved the proposal of US-based Walt Disney Co's Singapore subsidiary to increase its stake in the company to 100 per cent.

THE GAME CHANGER: Ronnie Screwvala

Cheering the news, shares of the company opened on a robust note and touched a high of Rs 994.80, up 4.61 per cent from their previous closing price on the Bombay Stock Exchange. In a similar fashion, the scrip went up by 4.55 per cent to an early peak of Rs 994.80 on the National Stock Exchange.

UTV Software among the top performing stocks

The Cabinet Committee on Economic Affairs (CCEA) approved the proposal in its meeting on Wednesday.

According to the proposal, the Singapore subsidiary of Walt Disney Company - Walt Disney Company (Southeast Asia) Pte Ltd - will increase its shareholding in UTV Communications on a diluted basis to 100 per cent from 48.02 per cent at present.

LEADERSHIP SPEAK: Rohinton 'Ronnie' Screwvala

"This approval is expected to result in FDI inflows amounting to Rs 8,250 crore," according to an official release.

Meanwhile, the Sensex and Nifty were trading lower by over 1 per cent at 10.35 am.